Cryptocurrency News

Record $141M Outflow From Bitcoin Products Signs Institutions Are Bearish On BTC: CoinShares


The latest report from analytics firm CoinShares shows that outflows from institutional BTC investment products continue to increase.

June 7 according to CoinShares Digital asset fund inflows weekly report goodAs institutional investors continue to reduce bitcoin exposure, BTC investment products saw a record outflow of $141 million last week.

Capital Flow for Crypto Investment Products: CoinShares

The data follows massive institutional selling amid May’s dramatic crypto market meltdown, with institutions withdrawing nearly $100 million from crypto products between May 10 and May 16, before slowing outflows late last month. Gone.

Trading volume for BTC products is also declining sharply, with the first week of June seeing a 62% drop in trading activity compared to the weekly average for May.

Despite describing institutional sentiment towards BTC as bearish since early May, CoinShares highlighted that the outflows represented less than a tenth of 2021 inflows:

“The outflows represent 8.3% of the net inflows seen this year and remain minimal relative to the outflows seen in early 2018.”

Since the beginning of 2021, over $4.2 billion of capital has flown into bitcoin products, with BTC accounting for 65.9% of all capital locked in current crypto investment products.

Declining institutional demand for BTC is on the rise again Institutional Hunger for Ethereum Ether represents over 26.8% of the combined assets under management (AUM) currently locked in crypto investment products, after receiving an inflow of $33 million last week.

CoinShares also reported that investors are seeking exposure to Ripple (XRP) and Cardano (ADA) investment products, with XRP inflows totaling $7 million – its biggest weekly inflow since April – and ADA has an inflow of $4.5 million.

According to CoinGecko data, Ether continues to usurp Bitcoin’s position Most traded non-stable currency crypto asset in the wider crypto markets.

Roughly $37.4 billion of Ether was traded in the past 24 hours – second only to stablecoin Tether’s $75.5 billion in daily trading. By comparison, bitcoin has processed $32.9 billion in 24-hour trading volume.